GBP supported on better outlook

The Pound continues to maintain this higher ground against most of the major currencies including the Euro with rates hovering close to the 1.15 barrier for the GBP/EUR pair and creating a good opportunity for those clients looking to buy Euros. The table below shows the movements for a number of GBP pairings yesterday:

Currency Pair

% Change

Difference on £200,000

GBP

EUR

0.25%

€580 EUR

GBP

USD

0.6%

$1760 USD

GBP

CAD

0.8%

$2960 CAD

The Pound was boosted in morning trade after it was reported by Halifax that house prices climbed sharply in March by 1.5%, the biggest gain since August last year. Whilst not the most prominent economic indicator it does still prove as a useful gauge as to the health of the economy. It is normally the construction and housing sectors which are the first to drop sharply before an economic downturn so the data is at least welcome news for GBP.

The main focus will now be on tomorrow's industrial and manufacturing production numbers for February although if last week's data is anything to go by we could see a drop in production which could weigh on the Pound. There is a good chance that the Q1 GDP may be slightly weaker than Q4 and this could have a negative impact on Sterling exchange rates.

The effects from the cold winter blast from the 'Beast from the East' have recently been highlighted in the economic data although the markets so far have shrugged off the poorer numbers as a one off.

UK Data – GDP Focus

Data for the UK is particularly light this week with no economic data today although Monetary Policy Committee member Andy Haldane will be speaking this morning and any clues offered as to the next UK interest rate increase could see volatility for the Pound.

Tomorrow afternoon sees the National Institute for Economic and Social Research (NIESR) which will provide its Gross Domestic product (GDP) estimate for the 2nd quarter. Although this is not the official data release the numbers are seen as an excellent precursor to the official data and can give a good gauge as to what the future data might look like. Anything positive from this release could help support the pound and end up in a small rally higher.

For more information on how upcoming events could affect your currency transfer, call our currency brokers on 01494 725 353 or email me directly at jll@currencies.co.uk. Alternatively, you can set a rate alert here.

T. Fox

I had the money from the sale of our villa in Spain transferred to my bank account in the UK. My contact was James and they handled every aspect of the transfer quickly and efficiently and after agreeing the rate the money was in my uk bank account the same day.

L. Heaven

UK

Foreign Currency Direct are simply the best! I have been using them for the last 16 months since buying our home abroad. I regularly need to transfer money into Euros to pay for bills & they always make the transactions very simple & easy to do.

H. Mcclean

Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.